States of flux: How to juggle between government bonds and equities in unprecedented times

Deep Dive into fixed income

The role of fixed income in a multi-asset portfolio is being challenged in current markets. Typically, high quality bonds such as government debt have been a perfect foil to equity holdings in a multi-asset portfolio.

Correlations between equity and fixed income are not constant through time and fluctuate between positive and negative depending on the timeframe. For example, the rolling 12-month correlation between...